Chinese wind power producers plan Hong Kong IPOs

November 16, 2010
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, HONG KONG, Nov 16 – Two of China\’s top power producers plan to raise 2.5 billion US dollars by listing their wind-power units in Hong Kong, reports said Tuesday, the latest among several green firms to list in the city.

Huaneng Renewables, a unit of major power producer China Huaneng Group, plans to raise 1.5 billion US dollars ahead of a listing on December 16, the Wall Street Journal reported, citing a term sheet for the deal.

China Datang Corp. Renewable Power, a unit of China Datang Corp, plans to raise one billion US dollars before its December 9 listing, the Journal said.

Both companies began pre-marketing the deals Monday and plan to price their offerings in early December.

Huaneng Renewables, which plans to sell 2.49 billion shares, will use the proceeds to expand its wind power business, repay bank loans and acquire wind power projects in China and overseas, the report said.

Datang Corp.\’s subsidiary, which aims to sell 2.14 billion shares, plans to use the cash to fund wind power projects in Inner Mongolia, repay bank loans and purchase wind turbines.

Six clean energy companies have listed in Hong Kong since 2009, raising a total of 4.4 billion US dollars, according to Dow Jones Newswires.

Beijing\’s efforts to reduce dependence on coal and crude oil by developing cleaner forms of energy have raised investor interest in the renewable energy sector, leading to the Hong Kong listings.
 

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